The Committee for the Implementation of Monetary Policy discussed in its first meeting for this year, headed by the Governor of the Central Bank of Syria, Dr. Hazem Qarfoul, the issuance of certificates of deposit in the Syrian pound for the second time according to different deadlines and by using the method of public auction.
The committee pointed out the importance of setting a calendar for the issuance of certificates of deposit during the current year due to the positive results achieved by the first issuance in February last year, which witnessed a great turnout by banks eligible to subscribe that subscribed to 1308 certificates with a total value amounting to more than 130 billion pounds.
The committee indicated that the 16 traditional public and private banks subscribed were able to increase the total deposits in the Syrian pound by 182.9 billion pounds between February and August last year, covering 141 percent of the volume of certificates of deposit. This confirms that the certificates motivated banks to attract liquidity from the existing local market. Outside the banking channels is larger than the issuance of these certificates.
The committee also stressed the importance of the Ministry of Finance to accelerate the issuance of treasury bills and bonds as one of the most important means for managing public debt, in order to reduce inflationary pressures in the national economy on the one hand, and financing investment projects included in the 2020 budget on the other hand.
The Central Bank announced on the fourth of February last year the issuance of certificates of deposit in the Syrian pound under the issuance of No. 1 for the first time in its history, with a nominal value of the certificate 100 million Syrian pounds and an interest rate of 4.5 percent, on the basis of which the value will be calculated after the discount and for a period of one year.
It is mentioned that the Monetary Policy Implementation Committee recommended in its second meeting last year to raise interest rates on deposits in Syrian pounds and foreign currencies, which contribute to attracting deposits and capital from abroad and employ them in banks, provided that this is presented to the Monetary and Credit Council to take appropriate decisions in this regard.